April 28, 2026 /SemiMedia/ — Omdia has sharply raised its 2026 semiconductor revenue outlook, pointing to strong demand and tight supply, with memory expected to lead the growth.

The firm said the DRAM market could nearly double in size, while NAND, starting from a smaller base, may grow by up to four times compared with 2025.

Supply for traditional memory chips remains constrained as more capacity is directed to high-bandwidth memory. HBM output is still limited but sells at much higher prices, helping lift overall market value. Supply pressure is likely to ease only around mid-to-late 2027.

On the demand side, data centers and enterprise systems are driving growth. A new server upgrade cycle, along with strong spending from large cloud providers, is pushing demand for high-performance memory.

At the same time, the industry is moving toward newer chip designs and faster interconnects, which are raising system value. Tight supply of key components is also pushing up average selling prices.

Computing and storage are expected to be the fastest-growing segments, with revenue seen rising about 90% year-on-year in 2026, taking the total market past $700 billion.

Consumer electronics and wireless markets are also expected to see gains. Even if device shipments stay flat, higher memory prices will increase bill-of-material costs and support revenue growth.